18
2. F Test Results
F test basically shows whether all the independent variables included in the model have jointly influence the dependent variable.
Table 4.10 Calculation results of F Test Manufacturing Company
Model Sum of Squares
df Mean Square
F Sig.
1 Regression Residual
Total 1892.188
3 630.729
5.323 .002
a
10190.601 86
118.495 12082.790
89 a. Predictors: Constant, DVP, DER, PROF
b. Dependent Variable: MVC
Source: Secondary data were processed, 2014 From the results of the regression analysis can be seen that the
independent variables simultaneously have a significant effect on the dependent variable. This is evident from the value of F count F table at 5.323 2.47with a
probability of 0.05, namely 0.002 0.05. Because the probability is much smaller than 0.05 or 5, of the regression model can be said that the Profitability
PROF, Debt Policy DER, Dividend Policy DVP, have simultaneously affect the Market Value Of Company MVC.
3. R
2
Test results
The coefficient of determination R
2
was essentially measured how far the models ability to explain variation in the dependent variable. Value R
2
which is close to one means that the independent variables provide almost all the
information needed to predict the variation in the dependent variable Ghozali, 2006. The results of the calculation of the coefficient of determination can be
seen in table 4.11 below.
19
Table 4.11 The coefficient of determination R
2
Model R
R Square Adjusted R
Square Std. Error of the
Estimate 1
.396
a
.157 .127
10.88556 a. Predictors: Constant, DVP, DER, PROF
b. Dependent Variable: MVC
Source: Secondary Data processed, 2014 Based on SPSS output appears that the calculation of Adjusted R square
value is 0.127 or 12.7. This means that 12.7. of variation the Market Value Of Company MVC which can be explained by the variation of the three independent
variable are the Profitability PROF, Debt Policy DER, Dividend Policy DVP, while the rest of 87.3 influenced by other factors that are not included in the
regression model.
CONCLUSIONS AND POLICY IMPLICATIONS A. Conclusion
Based on test results and discussion on the influence of the the Profitability PROF, Debt Policy DER, and Dividend Policy DVP, on Market
Value of the Company. The researcher can summarize the findings in this study are as follows:
1. The result of testing the first hypothesis, the Profitability PROF statistically affect on Market Value of the Company MVC. Results of this study support
the agency theory shows the larger the profits, the greater the companys ability to pay its dividend, and this affects the value of the company increases.
2. The result of testing the second hypothesis, the Debt Policy DER does not significantly affect on the Market Value of the Company MVC. The results do
not support the agency theory, According to the agency theory, the conflict between debt-holders and equity-holders arises because debt contract gives
equity-holders an incentive to invest sub optimally.
20
3. The results of testing the third hypothesis, the Dividend Policy DVP does not significantly affect on the Market Value of the Company MVC. Results of this
study does not support the Modligami-Miller MM theory. The Modligami- Miller MM theory shows the increase in dividend payments seen as a signal
that the company has good prospects. Conversely a decrease in dividend payments will be seen as the new companys prospects.
B. Limitation of Research